GST i.e. Goods and Services Tax is the indirect tax levied in India on goods and services.

GST makes the whole process of tax on goods and services easier and ensures that the tax on goods and services should be uniform in every state of India so that the cost of any goods is almost the same in the whole of India.

GST Full Form

GST tax has been made such that it is charged at the consumption point and not at the origin point

Many people are involved in the process of manufacturing and selling any item, such as a manufacturer, wholesaler, retailer and consumer.

Under the GST process, the tax has to be paid at every stage, such as when the manufacturer sells the goods to the wholesaler, the wholesaler will pay the tax.
At the same time, when the wholesaler sells the goods to the retailer, the retailer will pay the tax and finally consumer.

But all the people except the consumer get tax returns.

GST key points-

GST was introduced in India by the Parliament on 1 July 2017.

The GST Council is the governing body of the GST and has a total of 33 members. In which two are from Central Government, 28 from States and 3 are from Union Territory.

Under the GST process, every shopkeeper and service provider is given a GSTN number from which he can pay his tax and receive returns.

India’s GST collection is close to one lakh crore every year.

Why GST was needed in India?

Before GST in India, every state imposed different service tax on every good, which was called VAT.

This process had two disadvantages-

Under this process, the tax levied on any goods was different in different states, due to which the price of the goods would go up and down in different states, and which promoted tax evasion and black marketing.

Under this process, at every stage, the cost price was also taxed, due to which the cost of any goods was very high.

That is why India needed a tax system in which there should be a uniform tax system in the entire country.

GST has today made the entire indirect text process very easy and almost eliminated tax evasion.

Different types of GST

There is a provision of 4 types of GST tax in India.

CGST– Central Goods and Services Tax- by Central Government

SGST– State Goods and Services Tax- By State Government

IGST- Integrated Goods and Service Tax- By Central Government and State Government

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